Early in 2025, Swifty Equipment sold 500 Rollomatics at $5,500 each. During 2025, Swifty spent $18,000 servicing the 2-year assurance warranties with inventory, cash, and payables that accompany the Rollomatic. All sales transactions are on a cash basis. Show Transcribed Text Prepare 2025 entries for Swifty assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $51,000 relates to sales of warranty contracts. Warranty costs incurred in 2025 were $18,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation I (To record the sale and related warranties) Debit Credit

Early in 2025, Swifty Equipment sold 500 Rollomatics at $5,500 each. During 2025, Swifty spent $18,000 servicing the 2-year assurance warranties with inventory, cash, and payables that accompany the Rollomatic. All sales transactions are on a cash basis. Show Transcribed Text Prepare 2025 entries for Swifty assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $51,000 relates to sales of warranty contracts. Warranty costs incurred in 2025 were $18,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation I (To record the sale and related warranties) Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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